CashoutGlossary / Tax bracket
Tax bracket
A range of taxable income taxed at one rate; federal rates run from 10% to 37%, and each rate applies only to the income inside its own range.
Federal income tax has seven rates: 10%, 12%, 22%, 24%, 32%, 35% and 37%. Each applies only to the slice of taxable income that falls inside its range. Your bracket is the rate on your last dollar, also called your marginal rate.
2026 brackets for single filers, on taxable income after deductions:
- 10%: up to $12,400
- 12%: over $12,400 up to $50,400
- 22%: over $50,400 up to $105,700
- 24%: over $105,700 up to $201,775
- 32%, 35% and 37% above that, with 37% starting over $640,600
For married filing jointly, 10% runs to $24,800, 12% to $100,800 and 22% to $211,400.
Your marginal rate is what a deduction is worth to you. A $1,000 deduction saves $120 at 12% and $220 at 22%, which is why the No Tax on Tips deduction saves different people different amounts.
Common mistake: fearing that a raise or a big tip month will push all your income into a higher bracket. Only the dollars above the line are taxed at the higher rate. And brackets are for income tax only. FICA and self-employment tax are flat rates on top.
Related terms
Standard deduction · Form 1040 · Itemized deduction · FICA
